NJ Industrial Asset Attracts Long-Term Investment
- Aug 30, 2017
NAI James E. Hanson has brokered the sale of a 157,822-square-foot industrial building in Flanders, N.J., on behalf of both the seller, 700 Bartley Chester Road LLC, and the buyer, CRG 700 LLC.
“The location of the property, its targeted use as an investment property, the quality of the existing structure and the buyer’s familiarity with the local market made this a highly appealing property,” Joshua Levering, SIOR, NAI James E. Hanson’s senior vice president, told Commercial Property Executive. “The building was held in a trust which wanted to redeploy the funds in different directions. As a leased investment warehouse/manufacturing property, the demand was very strong.”
Located at 700 Bartley Chester Road, the property features four one-ton crane rails and two half-ton crane rails, 11 tailgates, three drive-ins, 82 parking spaces and 8,524 square feet of office space.
Uncommon Logistics has occupied 100 percent of the building since 2011 and signed a 7-year lease extension earlier this year.
NAI Hanson’s John Schilp has a long history with the property, as he sold the land to build it to the original owner in 1988.
It’s conveniently located in a Designated Free Trade Zone less than a mile from Route 206 and offers access to Route 46 and Interstates 24, 78, 80 and 287.
“The property’s access to major highways is excellent,” Levering said. “The future rail access and increasing hurdles to market entry indicated an appreciating asset for the foreseeable future.”
According to Schilp, CRG 700, LLC acquired the property as a long-term industrial investment due to the continued high demand for well-located, over 100,000-square-foot industrial properties.
NAI James E. Hanson’s Q2 2017 Northern and Central New Jersey Industrial report echoed this belief.
“We have seen a sustained shortage of available industrial space amidst unwavering strong demand from distribution and warehousing users in traditional markets such as the Meadowlands and Port Newark and Elizabeth,” Schilp said. “As companies look west for affordable and available industrial space, regions like Morris County are becoming more attractive plays for investors searching for lower barriers to entry to acquire stable and income-generating properties.”
According to Levering, the new owners are planning on making upgrades to the property, but details have yet to be formalized.
Image courtesy of NAI James E. Hanson